Advanced American Construction, Inc. v. United States

111 Fed. Cl. 205, 2013 U.S. Claims LEXIS 600, 2013 WL 2436518
CourtUnited States Court of Federal Claims
DecidedJune 5, 2013
Docket12-694C
StatusPublished
Cited by15 cases

This text of 111 Fed. Cl. 205 (Advanced American Construction, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced American Construction, Inc. v. United States, 111 Fed. Cl. 205, 2013 U.S. Claims LEXIS 600, 2013 WL 2436518 (uscfc 2013).

Opinion

Pre-Award Bid Protest; Post-Award Bid Protest; Standing; Blue & Gold Fleet-, Documented Market Research; 8(a) Business Development Program; FAR 10.001; FAR 10.002; FAR 19.805-1; Special Standards of Responsibility.

OPINION AND ORDER

Bush, Judge.

Advanced American Construction, Inc. (AAC) filed its pre- and post-award bid protest complaint in this court on October 15, 2012. In its complaint, AAC challenges the decision of the United States Army Corps of Engineers (the Corps or agency) to set aside a contract under Solicitation No. W912EF-12-B-0022 (the IFB) for competition among 8(a) small business concerns. AAC also challenges the award of that contract to TSS-Gai-co Joint Venture (TSS-Garco). The sub-jeet contract is for the construction of a new barge moorage facility on the north side of the Snake River at Lower Granite Dam near Pomeroy, Washington. Defendant has agreed to stay performance of the contract until the court resolves this protest on the merits. 2

This bid protest is now before the court on defendant’s motion to dismiss the complaint pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules of the United States Court of Federal Claims (RCFC), and on the parties’ cross-motions for judgment on the administrative record pursuant to RCFC 52.1. Because plaintiff has standing in this ease and did not waive its pre-award challenges to the IFB, the court hereby denies defendant’s motion to dismiss the complaint. For the reasons, discussed below, however, the motion for judgment on the administrative record filed by defendant is granted, and the cross-motion filed by plaintiff is denied.

BACKGROUND

I. Factual Background

On July 30, 2012, the Walla Walla District of the Corps issued the IFB. See AR Tab 13. Because most of AAC’s challenges to the procurement are based on the agency’s decision to offer the contract to the Small Business Administration (SBA) as an 8(a) set-aside, the court’s recitation of the facts in this case are focused primarily on events that occurred before the IFB was issued by the Corps.

A. The 8(a) Business Development Program

In 1978, Congress amended the Small Business Act to establish the 8(a) business development program. Pub.L. No. 95-507, sec. 202, 92 Stat. 1757, 1761 (1978) (codified as amended at 15 U.S.C. § 637 (2006)). Under that program, a procuring agency may offer a contract to the SBA as a prime con *210 tractor, which then subcontracts the requirements of that contract to small business concerns owned and controlled by socially and economically disadvantaged individuals, otherwise known as 8(a) firms. 3 See 15 U.S.C. § 637(a)(l)(A)-(B). Generally, set-aside contracts with a value below the competitive acquisition threshold — currently, $4 million for construction contracts — are awarded on a sole-source basis, while contracts with a value above that threshold are competed among 8(a) firms. See id. § 637(a)(l)(D)(i); 13 C.F.R. § 124.506 (2013); 48 C.F.R. § 19.805-1 (2012).

Under the Small Business Act, the president is required to establish goals for the percentage of procurement contracts awarded to various types of small business concerns in each year. 15 U.S.C. § 644(g)(1) (2006). For the 8(a) program, the Act provides that the government-wide goal must be at least five percent of the total value of all prime contract and subcontract awards in each fiscal year. Id. Individual agencies are also required to establish their own contracting goals, which are to represent “the maximum practicable opportunity for small business concerns, small business concerns owned and controlled by service-disabled veterans [SDVOSBs], qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women.” Id.

The SBA and the Department of Defense, of which the Corps is a part, have entered into a partnership agreement, under which the Corps is authorized to award contracts to the 8(a) firms directly. See AR at 1081-91. Section 19.803 of the Federal Acquisition Regulation (FAR) describes the process for selecting acquisitions for the 8(a) program:

Through their cooperative efforts, the SBA and an agency match the agency’s requirements with the capabilities of 8(a) concerns to establish a basis for the agency to contract with the SBA under the program. Selection is initiated in one of three ways—
(a) The SBA advises an agency contracting activity through a search letter of an 8(a) firm’s capabilities and asks the agency to identify acquisitions to support the firm’s business plans.
(b) The SBA identifies a specific requirement for a particular 8(a) firm or firms and asks the agency contracting activity to offer the acquisition to the 8(a) Program for the firm(s).
(c) Agencies may also review other proposed acquisitions for the purpose of identifying requirements which may be offered to the SBA. Where agencies independently, or through the self-marketing efforts of an 8(a) firm, identify a requirement for the 8(a) Program, they may offer on behalf of a specific 8(a) firm, for the 8(a) Program in general, or for 8(a) competition.

48 C.F.R. § 19.803 (2012). Following a preliminary evaluation of its decision to offer an acquisition to the SBA for inclusion in the 8(a) program, see 48 C.F.R. § 19.804-1 (2012), the agency then formally offers the acquisition to the SBA, and it is required to include certain information about the project in its letter to the SBA, see 48 C.F.R. § 19.804-2 (2012). Finally, the SBA must accept — or decline — the acquisition for inclusion in the 8(a) program within a specified period of time. See 48 C.F.R. § 19.804-3 (2012).

B. The Challenged Procurement

1. The Set-Aside Decision

Based on the record, it appears that the decision to set aside the subject contract for *211 competition among 8(a) firms began to take shape in April 2012.

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Cite This Page — Counsel Stack

Bluebook (online)
111 Fed. Cl. 205, 2013 U.S. Claims LEXIS 600, 2013 WL 2436518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-american-construction-inc-v-united-states-uscfc-2013.